Utah’s Data Center Boom Raises Concerns About Energy Supply and Environmental Impact
In rural Millard County, Utah, residents like Kalen Taylor are facing the imminent transformation of farmland into a massive data center complex. The planned 4,000-acre site by Joule Capital Partners will feature six buildings powered by natural gas generators, raising concerns about environmental impact and noise pollution for nearby residents.
Meanwhile, in the city of Eagle Mountain, officials are grappling with the energy demands of data centers operated by tech giants like Meta. The city’s plans for growth and revenue generation through data centers have hit roadblocks due to energy constraints from Rocky Mountain Power, leading to discussions about alternative energy sources like small nuclear reactors.
Senator John Curtis highlighted Utah’s ambitions in technology and data centers during a Senate hearing, acknowledging the challenges posed by their energy demands. With the state positioning itself as a leader in the AI industry, the pressure to meet energy needs while protecting the environment and ratepayers is mounting.
Utah has seen a surge in new data center projects since 2021, adding to the thousands planned across the country. However, the state’s main electricity provider, Rocky Mountain Power, lacks the capacity to meet the growing demand, leading developers to generate their own power, mostly from natural gas.
Governor Spencer Cox’s Operation Gigawatt aims to increase Utah’s power generation, with a focus on nuclear energy. However, the reliance on fossil fuels for data center operations raises concerns about air quality and sustainability in the long run.
The clash between the AI boom and limited energy supply in Utah underscores the challenges of balancing economic growth with environmental conservation. Lawmakers and regulators are working to address these issues to prevent adverse effects on residents and the environment.
Data centers’ energy-intensive operations have strained Utah’s power supply, prompting discussions about alternative energy sources and regulatory changes. The rapid growth of AI technology has outpaced utilities’ capacity planning, leading to a scramble to meet the escalating energy needs of data centers.
With data centers becoming an integral part of modern life, the challenge for Utah lies in finding a balance between economic development and environmental sustainability. As the state navigates its role in the tech industry, ensuring a reliable and clean energy supply will be crucial for its long-term growth and success.
State Senator Scott Sandall, a Republican, has recently sponsored a bill that aims to provide more flexibility to Rocky Mountain Power in meeting the power demands of data centers, AI systems, and large manufacturers. Sandall highlighted the importance of data centers in changing the curve of power demand and emphasized the need to support their growth.
In Millard County, two major companies, Joule and Creekstone Energy, are planning to construct massive facilities powered by natural gas. Mark McDougal, a managing partner of Joule’s campus, explained that natural gas is an efficient and proven technology that can operate continuously. While the developers are excited about the potential of alternative energy sources like geothermal, solar, and wind, they believe that natural gas is a reliable option for the present.
The support from the Millard County government for these projects stems from the potential job creation in construction, maintenance, and security, as well as the economic development they could bring to the region. The county recently faced significant job losses due to the closure of the Smithfield Foods pork processing plant and the idling of the Intermountain Power Plant’s coal units.
Despite concerns about emissions, the location of Millard County is attractive to data center developers due to its proximity to a fiber-optic corridor and a natural gas pipeline. This unique combination, along with the county’s distance from the Wasatch Front, makes it an appealing choice for companies looking to establish data centers.
Joule and Creekstone have ambitious plans for their facilities, with Joule aiming to produce 1 gigawatt initially and potentially scaling up to over 4 gigawatts, while Creekstone intends to produce 10 gigawatts. The construction of these sites is expected to create jobs, although data centers typically employ a relatively small number of permanent workers.
In other parts of Utah, data center developers have also sought to build natural gas plants despite environmental concerns. The use of natural gas and diesel generators in these facilities could potentially impact air quality and contribute to pollution in the region. Environmental advocates have expressed concerns about the potential reversal of progress made in reducing emissions from other sources.
State regulators are closely monitoring the growth of data centers and associated emissions to ensure compliance with air quality standards. Despite the challenges posed by increasing energy demands, state officials believe that Utah can still lead in technology innovation while addressing environmental concerns. By balancing economic development with environmental sustainability, Utah can continue to attract tech companies and support their growth in a responsible manner. The state of Utah is currently facing a challenging dilemma as it attempts to balance the need for affordable energy creation, environmental protection, and improving public health. With the surge in energy demand driven by data centers, manufacturing, and future transportation electrification, state officials are grappling with how to meet these demands while also considering the impact on the environment and public health.
One company, Novva, applied for an exemption from the Clean Air Act to operate diesel generators while it finishes building its natural gas plant. The company cited national security interests and the importance of data centers in protecting American data as reasons for the exemption. However, the company did not receive a response to its request, highlighting the complexities of balancing energy needs with environmental regulations.
Utah’s elected officials have turned to nuclear power, particularly small modular reactors, as a cleaner and more sustainable solution to the state’s energy demands. However, enthusiasm for small nuclear reactors within the state appears to be limited, with only a few communities expressing interest in building them. This shift to nuclear power has raised questions among environmental and clean energy advocates about why the state has not focused more on renewables like solar and wind power.
Meanwhile, data center developers and operators are expressing support for transitioning to cleaner energy sources but also emphasize the need for consistent and reliable power. The uncertainty surrounding renewable energy projects, exacerbated by policy changes under the Trump administration, has made it challenging for companies to invest in green energy solutions. While some customers are willing to pay a premium for green energy, economic rebates and incentives for renewables are dwindling.
As Utah grapples with how to meet its growing energy demands while also protecting the environment and public health, finding the right balance between affordable energy creation, environmental protection, and public health remains a complex and ongoing challenge. With conflicting priorities and limited resources, the state’s approach to energy planning will be crucial in shaping its future energy landscape. Coal offers Conley another energy source that’s ready to deploy besides natural gas. “Diversification,” Conley said, “reduces risk.”
In the state of Utah, concerns about rising energy costs due to the increasing demand from data centers have been raised. News stories have highlighted the potential impact of data centers on electricity bills for all ratepayers. As utilities work to meet the rising demand by building new generating plants and upgrading grid equipment, the costs are spread among all customers.
An October report from the Pew Research Center estimated that data centers and cryptocurrency mining could cause the average U.S. electric bill to grow by 8 percent by 2030. This has led to concerns among Utahns about the potential impact on their electricity bills.
However, Senate Bill 132 in Utah seems to offer a solution by allowing data center developers to get the energy they need off the public grid and behind the meter. This helps protect other customers who still rely on the traditional grid for their energy needs.
Michele Beck, director of the Office of Consumer Services in Utah, believes that the bill is one of the best ideas for protecting power customers in the nation. She noted that there is very little evidence to suggest that data centers have impacted rates so far. However, Beck emphasized the importance of remaining vigilant as both utilities and regulators struggle to keep pace with the rapidly changing industry.
“The industry in general is speeding up,” Beck said. “It just compounds everything.”
Overall, the efforts to diversify energy sources and protect customers from potential rate hikes are crucial in ensuring a stable and affordable energy supply for all Utahns. Collaboration between stakeholders, including utilities, regulators, and consumers, will be key in navigating the evolving energy landscape.
Grist reporter Naveena Sadasivam and Tribune reporter Addy Baird contributed to this story. The field of artificial intelligence (AI) has been rapidly advancing in recent years, with new breakthroughs and applications being developed at a rapid pace. One of the most exciting new developments in AI is the use of deep learning algorithms, which have shown incredible promise in a wide range of applications.
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One of the key advantages of deep learning algorithms is their ability to process and analyze large amounts of complex data. This makes them particularly well-suited for tasks such as image and speech recognition, natural language processing, and autonomous driving. In fact, deep learning algorithms have been used to achieve impressive results in these areas, outperforming traditional machine learning algorithms in many cases.
One of the most well-known applications of deep learning algorithms is in the field of computer vision. Deep learning algorithms have been used to develop systems that are able to accurately identify objects in images and videos, as well as to detect and track objects in real-time. These systems have a wide range of applications, from security surveillance to medical imaging to autonomous vehicles.
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Overall, deep learning algorithms are revolutionizing the field of artificial intelligence, enabling new and innovative applications across a wide range of industries. With their ability to process and analyze large amounts of complex data, these algorithms are poised to continue driving advancements in AI for years to come.
